Print 12 comment(s) - last by Ryanman.. on Mar 13 at 8:57 AM

Funny video highlights serious issues with the world's most popular cryptocurrency.

Given all the Bitcoin scams and Bitcoin scammers around these days, some are trying to figure out why people are entrusting so much money in a scheme predisposed to fraud and popular among fraud artists.
Conan O'Brien offers a humorous take on this mess, interviewing the "COO of Bitcoin".  In the video, the Bitcoin professional tries to explain in "layman's terms" and then with a high-production video what exactly Bitcoin is.

Mr. O'Brien deserves some props for getting close to the definition when comparing Bitcoin to PayPal.  Bitcoin to the common man is a lot like PayPal.  It is arguably not a currency
However, unlike PayPal it is stored locally as data in wallet apps, making it pretty easy to steal.  And it acts as a speculative investment.  And it seeds wealth to early adopters.  And it makes a tempting honeypot for government sorts, who watch bemused as drug sellers mail packages of drugs in the mail, thinking they will be protected by Bitcoin's "anonymity".

Source: TeamCoco

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Another trend scam
By v1001 on 3/11/2014 12:26:33 PM , Rating: 5
Bitcoin = Beanie Babies in the 90's.

Soon they will be worthless

By bsim50 on 3/12/2014 2:06:29 PM , Rating: 3
As pointed out in another post, the sheer absurdity of how intrinsically "value-less" and pyramid-scheme-like Bitcoins are is that it costs $15m per day / $5.5bn per year in electricity alone to mine new BC's whilst the 12.5m Bitcoins in circulation x $640 are only worth $8bn in total market combined value (after all these years of mining)...

Meanwhile the rate of new BC's being produced falls to 147,500 new bitcoins (and shrinking) per month, so on a macro-level, that's $5.5bn electricity costs per year just to mine $814m new coins per year.

And that's "Smart investing". LOL.

Let's be honest - this is mostly economically illiterate geeks who are only doing this as some half-baked emotional rebellion against the Fed expanding the USD. Bitcoin's $9 to +$1,000 in 4 years is a joke as a "currency". It's the deflationary equivalent of +180% annual year-on-year price inflation which far exceeds even the worst $ devaluation by a +10x factor.

Eventually it'll sink in that the solution to a unsustainable inflationary fiat scam is not an unsustainable deflationary pyramid scheme with a 5 year shelf life.

Or that any currency with a maximum 21m units meant for 7bn people will experience a permanent liquidity crisis. With a maximum possible 21m Bitcoins, for the whole world, that means there'll only ever be enough currency for just 0.3 cents average per person - which is even more of a problem than the USD inflating as it'll never be liquid enough to be a stable currency or treated like a currency, and is just a gimmick that only works when only a very few geeks use it.

Or that the true crypto-currency winners are those who CREATE them, milk off all the easy money, then bail out (whilst hyping all the time), ie, classic "pump & dump", not those who actually attempt to use it as some medium of exchange 2 years later.

Or for those who say Bitcoin is "backed by maths" - the maths is entirely self-justifying and solves no real-world problems that have any real-world economic value attached to it other than to justify the existence of the Bitcoin! Ultimately, it's like "backing the US Dollar" with USD bank-note verification machines, which only exist because the USD exists...

etc, etc. You get the picture.

By Ryanman on 3/13/2014 8:57:38 AM , Rating: 2
Or that any currency with a maximum 21m units meant for 7bn people will experience a permanent liquidity crisis.

So basically you're saying "I have literally no idea how bitcoin works, but I'd like to spew my uninformed opinion out whenever I can." Gotcha.

By inperfectdarkness on 3/12/2014 3:39:33 AM , Rating: 3
However, unlike PayPal it is stored locally as data in wallet apps, making it pretty easy to steal. And it acts as a speculative investment. And it seeds wealth to early adopters.

What part of this DOESN'T sound like a Ponzi-Scheme? Seriously.

Never any upsides
By Ristogod on 3/11/14, Rating: -1
RE: Never any upsides
By drlumen on 3/11/2014 12:13:52 PM , Rating: 2
Personally, I always thought their previous years coverage of Mt.Gox and bitcoin was a bit of undeserved hype. I'm glad they are giving as much attention to Gox's demise as they did to its rise.

This may not be good for bitcoin in general but I don't care. I didn't invest any real money into it and won't.

At worst this Karpeles guy was a d-bag. IMO, he was a greedy scam artist guilty of fraud on a massive scale. At best he was an egotistical and incompetent d-bag on a massive scale.

RE: Never any upsides
By v1001 on 3/11/2014 12:15:52 PM , Rating: 2
Are you kidding all we had to hear about for years was all the fools who prophesied about bitcoin like it was the second coming of the real currency. They'd attack anyone who said different. It's nice to finally get to hear the real story about it. It deserves to be ridiculed so hopefully more blind won't keep leading the blind. For years you people kept pumping this junk for your own gain. Turning a blind eye to it's down sides. Let's give some more warnings to this disaster so others don't get ensnared.

RE: Never any upsides
By michael2k on 3/11/2014 12:22:16 PM , Rating: 2
The only pro to BitCoin is that you can make it yourself; everything else about it is the same as any other speculative financial investment.

If you replaced the word 'BitCoin' with "Cloth Diapers" you get much the same effect.
1) You can make it yourself
2) Quite a few people hoard them
3) They are traded over the Internet (there are in fact diaper exchanges!)
4) Some people are buying specialized hardware to make them as efficiently as possible in order to make money off the phenomenon

RE: Never any upsides
By atechfan on 3/11/2014 1:09:28 PM , Rating: 2
There are upsides?

RE: Never any upsides
By retrospooty on 3/11/2014 2:51:20 PM , Rating: 1
Have considered the inventreprenuertunities ?

RE: Never any upsides
By The Von Matrices on 3/11/2014 5:32:32 PM , Rating: 1
Within each individual news article, Jason is more or less accurate. The problem is the topics on which he chooses to report, but this is hardly a problem limited to him. In a world of internet news driven by drawing the highest number of page views, reporting less sensational and more positive news (e.g. that now accept Bitcoin) just isn't profitable. I agree with your comment, but I don't think it will change anything. Just remember that even if you get rated down, comment ratings on the internet are driven by popular opinion of the article's viewers rather than by the merits of their content.

What Bitcoin has always needed is wide public awareness in order to succeed. While the breach of trust with Karpeles is of course undesirable, it also causes more and more reporting on Bitcoin. Just the mere idea that major news networks are discussing it gives it credibility and encourages people to find out more about it. Who would have thought months ago that Bitcoin would become part of late night comedy routines? How many people do you think saw that clip and and went on to learn more about Bitcoin? I suspect the number is not insignificant.

RE: Never any upsides
By TSS on 3/11/2014 7:59:23 PM , Rating: 2

Then explain those 3 articles putting bitcoin in a positive light. If anything Jason has shown himself to be a proponent of bitcoin, with to my memory the positive articles far outweighing the few negative ones as of late. And why have there been negatives? Maybe because negative things are happening to bitcoin? (well, mt.gox, bitcoin is still at $640 a pop on other exchanges) Which is also why the OP was rated down (and you as well), plain ignoring bad stuff or trying to explain it as "sensationalism" isn't going to do anybody good. Sometimes bad stuff happens, get over it.

If your oppinion has merit it *will* be appreciated. If you want proof, search for my name on that middle link there. You'll find a very negative comment, on a positive bitcoin article, while it was only going up from there going from $32 to $1100+ later on, and i still got rated up to 4 for it. Because it had merit, for no other reason then that. It's a comment i can still stand by to this very day, while yours and the OP's is just a simple google away from being disproven. That's the real difference between being rated up or down.

Aside from those times when you just ruffle feathers. I've done that before, no amount of merit will save your rating when you know you're pissing people off. But meh, if ratings on the internet is all you care about, commenter or journalist.... then i pity you.

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